Jan032018

In her first stop on the Tax Cuts and Jobs Tour, Rep. Kristi Noem dropped into Black Hills Bagels in Rapid City to discuss changes to the tax code that are intended to help small businesses keep money locally. South Dakota’s 83,000 small businesses employ nearly 60 percent of the state’s workforce, and through tax reform, many will have access to a new small business deduction, lower tax rates, immediate expensing, and interest deductibility. Noem, who once owned a hunting lodge and helped manage her mother’s restaurant, was a critical player in negotiating the newly enacted H.R.1, the Tax Cuts and Jobs Act.

“I’m grateful for my experiences as a small business owner and now use them to write better policy,” said Noem. “Through tax reform, we offer small businesses a first-ever 20 percent tax deduction while expanding expensing tools, preserving interest deductibility, and doubling Death Tax exemption levels. Additionally, for those that file as individuals, we double the standard deduction, keep popular retirement savings options, and dramatically increase the Child Tax Credit. Each of these tools are designed to keep more money locally, better ensuring that what we make in South Dakota is spent in South Dakota to grow wages and create jobs in South Dakota.”

Noem, who served on the final tax reform negotiating team, will visit Rapid City, Brookings, Sioux Falls, Huron, Watertown, Aberdeen and Pierre as part of her statewide Tax Cuts and Jobs Tour. In each community, Noem will sit down with South Dakotans to discuss tax reform’s impact on their businesses, paychecks and families.

Highlights of the Tax Cuts and Jobs Act for Small Business

Offers a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income earned by S corporations, partnerships, LLCs, and sole proprietorships.

Allows businesses to immediately write off the full cost of new equipment, which is critical for South Dakota’s agriculture community.

Protects the ability of small businesses to write off interest on loans, helping these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.

Doubles Death Tax exemption levels.

Lowers individual tax rates, setting them at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of their hard-earned money.

Nearly doubles the standard deduction to $24,000 for married couples and $12,000 for single filers.

Provides unprecedented support for families.

Increases the Child Tax Credit to $2,000 per child.

Eliminates the “marriage penalty.”

Preserves the Child and Dependent Care Tax Credit (also known as the Child Care Credit) to better support working parents.

Retains popular retirement savings options, such as the 401(k)s and Individual Retirement Accounts.